Recently it was reported that the market value of IBM has exceeded Microsoft, which attracts much attention. And some people think that this means that IBM would exceed Microsoft in the near future. Behind the comparison of market value we pay more attention on the issue that which is stronger in the market. And whether the market value can represent the whole company?
We can easily conclude from the statistics that the revenue of IBM is more than Microsoft. But on the point of profitability Microsoft is stronger than IBM. And on other aspects the revenue increase rate and profit increase rate of Microsoft is higher than IBM. When concerning the two companies’ same business, operating system, Microsoft takes up 78.6 percent of the market and IBM only takes up 7.7 percent. And in the enterprise software field Microsoft also takes the lead.
So generally speaking Microsoft performs better than IBM in the market. But why the market value of IBM exceeds that of Microsoft.
We should take into the consideration of different businesses of those two companies. We all know that now IBM is focusing on providing business solutions for companies. Although Microsoft now is still enjoying market supremacy on the operating system, it doesn’t perform well on the fields of internet and mobile phone OS. So we often ignore the advantages of Microsoft on the pc OS market. So on the share market Microsoft was exceeded by IBM.
Lastly market value can’t represent a whole company. And we can’t say that Wal-Mart is stronger than Google just because of the market values.